tag:blogger.com,1999:blog-33597611737323074542012-02-16T02:27:56.856-08:00Ron Stonehttp://www.blogger.com/profile/06250136107427635974noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-3359761173732307454.post-39882095623961391612010-02-14T08:45:00.000-08:002010-02-14T09:41:37.309-08:00Many a promissory note holder fall short in how they handle their private mortgage note so as to 1) protect their asset and 2) Get the best price when they approach a note buyer or note brokers to sell their mortgage note. Following are some tips on managing your promissory note that may help.<br /><br />1. Review the buyer's property taxes once a year to be sure they are current. If the buyer gets behind in property taxes, you could end up with tax lien sale. You would most likely want to step in by paying the property taxes in order to prevent this.<br />2. Keep tabs on their homeowner's insurance to be sure it is also current. If the buyer has not paid their homeowner's insurance and it has lapsed, you will need to purchase a policy and have the mortgagor pay for its cost.<br />3. Once a year, review the buyer's insurance coverage to be sure it is adequate to cover the loan and that you as the mortgage holder are the Mortgagee on the policy.<br />4. Inspect the property from the street a couple of times each year, looking for major signs of disrepair. Some mortgage note holders have found that the buyer is not even living in the home any more and is renting the house out to a friend or relative.<br />5. When the mortgagor exhibits a pattern of late payments, check to see if the mortgagor(s) are still employed. If they are self-employed, go by their business to be sure they are still in business. This is particularly important if the current economic times with millions of people loosing their job as well as many thousands of businesses going out of business.<br />6. Check the local property tax records once a year for any new liens on the property. This could be in the way of a second mortgage, which may not be allowed per the mortgage agreement, or there could be a government tax lien<br />7. Keep detailed records of payments on the mortgage, including date of payment, check number, returned check information, amortization schedule, etc. You will need this in case of a dispute.<br /><br />Lastly if you are about to create a mortgage note, consult a <a href="http://bopster.vox.com/library/post/pricing-from-a-real-estate-note-buyer.html">real estate<span> note buyer</span></a> or promissory note buyer so as to be sure the terms allow you to get top money should you ever need to sell your note. You also want to be sure and check credit on the borrower so you'll know their credit before you call a <a href="http://www.us-note-buyer.com/">note buyer</a> for a quote.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3359761173732307454-3988209562396139161?l=promissorynotebuyer.blogspot.com' alt='' /></div>Ron Stonehttp://www.blogger.com/profile/06250136107427635974noreply@blogger.com0